The North East contractor has seen a substantial 80 per cent increase in profits, supported by a strong performance across its contracting and development divisions, with record cash reserves and £2 billion order book, providing confidence in future growth.
Turnover increased by £4 million to £265.2 million (FY2023: £260.5 million) for the year ended 31 December 2024, with gross profit margins boosted to 7.9 per cent.
Operating profits surged by 80.4 per cent to £5.2 million, up from £2.9 million in 2023.
The company also closed out the majority of contracts impacted by “aggressive cost inflation” over the past two years, leading to improved margins in the second half of the year.
Despite broader market challenges, pre-tax profits grew by 62.8 per cent, totalling £5 million (FY2023: £3 million).
Esh Group reached a record £35.7 million in cash, more than doubling 2023’s £16.9 million with total liquidity of £41.7 million, including an undrawn £6 million credit line.
This growth was driven by better working capital management, reduced days sales outstanding (DSO), and timely supplier payments.
The firm’s portfolio centres on work for local authorities, utility and environmental companies, registered affordable housing providers as well as the private housing sector.
Ongoing projects include Northumbrian Water Group’s £160 million wastewater contract.
Responding to the rising demand for affordable housing, it has also expanded its delivery across the North East, Tees Valley, Yorkshire, and the Humber, securing a 10-year pipeline through its partnership with Gentoo Group on the £170 million ‘Gentogether’ programme.
Chief executive, Andy Radcliffe expressed confidence, bolstered by a record £2 billion order book.
“We’ve made real progress as a business over the past few years as we fundamentally repositioned our group to target the most attractive segments of the market, and we’re in a really good place right now – which, many would argue is at odds with the broader industry narrative that suggests challenging trading conditions are persisting,” he said.
“With liquidity at an all-time-high, expanding gross profit margins, and a business plan delivering as intended, our group is well-positioned for continued success, with 2025 set to show an even greater improvement in profitability.”
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